Nutanix (NASDAQ: NTNX), a hybrid multicloud computing company, announced the findings of its seventh annual global Public Sector Enterprise Cloud Index (ECI) survey and research report. The study highlights significant progress and challenges in cloud and GenAI adoption within the public sector.

The report revealed that 83% of public sector organizations have a GenAI strategy in place. Among them, 54% are actively implementing the strategy, while 29% are in preparation stages.

However, 76% of IT decision-makers reported that their current infrastructure needs moderate to significant improvements to support modern, cloud-native applications at scale. This points to infrastructure modernization as a critical priority for enabling GenAI deployments.

The study also found that GenAI adoption is accelerating across the public sector. Leaders are increasingly using GenAI for employee support, chatbots, and content generation. Yet, concerns about security persist. About 92% of public sector leaders stated their organizations need to do more to secure GenAI models and applications. As a result, 96% reported that security and privacy are becoming top priorities.

Greg O’Connell, VP, Federal Sales, Public Sector at Nutanix, said, “Generative AI is no longer a future concept, it’s already transforming how we work. 94% of public sector organizations are already putting AI to work and expect returns in as little as one year.”

The report further explored trends in Kubernetes, containerization, and future cloud strategies. Key findings include:

• 92% agree more needs to be done to secure GenAI models and apps.
• 96% say GenAI is shifting organizational priorities toward privacy and security.
• 76% believe current infrastructure is not fully ready to support cloud-native applications.

Additionally, 96% of respondents said their organizations are already in the process of containerizing applications. The benefits of cloud-native apps and containers are widely recognized, with 91% acknowledging their positive impact.

This year’s ECI report was conducted by Vanson Bourne in Fall 2024. The study surveyed 1,500 IT and DevOps decision-makers across various sectors and regions, including the Americas, EMEA, and APJ.

Nutanix’s latest findings reflect growing confidence in GenAI’s potential, while highlighting the urgent need for infrastructure, security, and skillset improvements in the public sector.

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